Why a ban on Huawei is being ignored by some of the oldest U.S. allies in Asia
By SHASHANK BENGALI and DAVID PIERSON
JUN 10, 2019 | 3:00 AM
| MANILA
An intersection in the commercial hub of Bonifacio Global City, in Manila, is watched over by Huawei surveillance cameras. (Shashank Bengali / Los Angeles Times)
On the site of a former World War II garrison where the U.S. Army trained local troops — and later firebombed tunnels to drive out occupying Japanese soldiers — the Philippines has built a shining symbol of its modern ambitions, a master-planned commercial district billed as one of the safest in the country.
Watching over Bonifacio Global City — a square-mile oasis of glinting high-rises and tree-lined streets southeast of Manila — are more than 200 high-definition security cameras. They were furnished by a company that has become a target in a new U.S. war: the Chinese telecommunications giant Huawei.
The surveillance network is one example of Huawei’s extensive inroads in Southeast Asia, where it has supplied much of the digital infrastructure and devices that have helped drive a decade of economic expansion: laying undersea cables, building mobile networks, establishing research labs, wiring government offices and commercial hubs, and selling more smartphones than almost any competitor.
Now the United States, locked in a trade war with China, is urging countries to cease doing business with Huawei, citing security risks posed by its alleged ties to the Chinese government.
But the Philippines — one of the oldest U.S. allies in Asia — has not signed on to the U.S. ban and is moving ahead with plans to use Huawei equipment in upcoming trials of ultrafast 5G wireless systems and a multi-city surveillance program far more advanced than that of Bonifacio Global City.
The Philippines’ approach illustrates how the U.S. effort to cripple Huawei “has really fallen flat in Southeast Asia,” said Brian Harding, a fellow at the Center for Strategic and International Studies in Washington.
It also suggests a further erosion of U.S. influence in a region where its longtime security partners are increasingly swayed by Chinese investment.
“There’s a skepticism of whether the U.S. arguments about the nefarious nature of Huawei and its connections to the Chinese government are actually valid,” Harding said. “And there’s a frustration the U.S. government isn’t bringing a viable alternative to the table.”
A salesperson offers discounts and promotions for Huawei smartphones at the Thailand Mobile Expo 2019 in Bangkok. (Rungroj Yongrit / EPA/Shutterstock)
With 650 million people — roughly half of them younger than 30 — and an economy whose output has nearly doubled in the last decade, Southeast Asia has emerged as an important market for tech companies. It is particularly crucial for Huawei because mature markets such as Japan, Australia and parts of Europe have already heeded Washington’s call to limit dealings with Chinese tech suppliers.
So far, no country in the region has banned Huawei devices. All but one are still planning to use the company’s technology for 5G, the next-generation wireless network seen as crucial to driverless cars, digital medical services, smart cities and other innovations.
Analysts say such countries are reluctant to exclude Huawei — whose products are considered equal to or better than those of Western rivals such as Nokia and Ericsson, and often 20% to 30% cheaper — if it means falling behind in the 5G race.
“Huawei has established its reputation for value-for-money networking equipment and that is highly attractive to developing and growth markets,” said John Ure, director of the Telecommunications Research Project at the University of Hong Kong.
Malaysian Prime Minister Mahathir Mohamad said last month that his country would use Huawei technology “as much as possible.” He dismissed concerns that it could be used for espionage by half-joking: “What is there to spy in Malaysia?”
Singaporean Prime Minister Lee Hsien Loong told an audience at the Shangri-La Dialogue, an annual regional security conference, that while the island city-state had yet to decide which 5G providers to use, “it’s quite unrealistic to expect 100% security from any telecommunications system you buy.”
Telecom companies in Cambodia, Indonesia and Thailand — another long-standing U.S. military ally — have also signed agreements with Huawei and rivals to develop 5G networks. Japan is alone among Asian countries in barring Huawei from 5G contracts.
more @ https://www.latimes.com/world/la-fg-philippines-huawei-southeast-asia-20190610-story.html
By SHASHANK BENGALI and DAVID PIERSON
JUN 10, 2019 | 3:00 AM
| MANILA
An intersection in the commercial hub of Bonifacio Global City, in Manila, is watched over by Huawei surveillance cameras. (Shashank Bengali / Los Angeles Times)
On the site of a former World War II garrison where the U.S. Army trained local troops — and later firebombed tunnels to drive out occupying Japanese soldiers — the Philippines has built a shining symbol of its modern ambitions, a master-planned commercial district billed as one of the safest in the country.
Watching over Bonifacio Global City — a square-mile oasis of glinting high-rises and tree-lined streets southeast of Manila — are more than 200 high-definition security cameras. They were furnished by a company that has become a target in a new U.S. war: the Chinese telecommunications giant Huawei.
The surveillance network is one example of Huawei’s extensive inroads in Southeast Asia, where it has supplied much of the digital infrastructure and devices that have helped drive a decade of economic expansion: laying undersea cables, building mobile networks, establishing research labs, wiring government offices and commercial hubs, and selling more smartphones than almost any competitor.
Now the United States, locked in a trade war with China, is urging countries to cease doing business with Huawei, citing security risks posed by its alleged ties to the Chinese government.
But the Philippines — one of the oldest U.S. allies in Asia — has not signed on to the U.S. ban and is moving ahead with plans to use Huawei equipment in upcoming trials of ultrafast 5G wireless systems and a multi-city surveillance program far more advanced than that of Bonifacio Global City.
The Philippines’ approach illustrates how the U.S. effort to cripple Huawei “has really fallen flat in Southeast Asia,” said Brian Harding, a fellow at the Center for Strategic and International Studies in Washington.
It also suggests a further erosion of U.S. influence in a region where its longtime security partners are increasingly swayed by Chinese investment.
“There’s a skepticism of whether the U.S. arguments about the nefarious nature of Huawei and its connections to the Chinese government are actually valid,” Harding said. “And there’s a frustration the U.S. government isn’t bringing a viable alternative to the table.”
A salesperson offers discounts and promotions for Huawei smartphones at the Thailand Mobile Expo 2019 in Bangkok. (Rungroj Yongrit / EPA/Shutterstock)
With 650 million people — roughly half of them younger than 30 — and an economy whose output has nearly doubled in the last decade, Southeast Asia has emerged as an important market for tech companies. It is particularly crucial for Huawei because mature markets such as Japan, Australia and parts of Europe have already heeded Washington’s call to limit dealings with Chinese tech suppliers.
So far, no country in the region has banned Huawei devices. All but one are still planning to use the company’s technology for 5G, the next-generation wireless network seen as crucial to driverless cars, digital medical services, smart cities and other innovations.
Analysts say such countries are reluctant to exclude Huawei — whose products are considered equal to or better than those of Western rivals such as Nokia and Ericsson, and often 20% to 30% cheaper — if it means falling behind in the 5G race.
“Huawei has established its reputation for value-for-money networking equipment and that is highly attractive to developing and growth markets,” said John Ure, director of the Telecommunications Research Project at the University of Hong Kong.
Malaysian Prime Minister Mahathir Mohamad said last month that his country would use Huawei technology “as much as possible.” He dismissed concerns that it could be used for espionage by half-joking: “What is there to spy in Malaysia?”
Singaporean Prime Minister Lee Hsien Loong told an audience at the Shangri-La Dialogue, an annual regional security conference, that while the island city-state had yet to decide which 5G providers to use, “it’s quite unrealistic to expect 100% security from any telecommunications system you buy.”
Telecom companies in Cambodia, Indonesia and Thailand — another long-standing U.S. military ally — have also signed agreements with Huawei and rivals to develop 5G networks. Japan is alone among Asian countries in barring Huawei from 5G contracts.
more @ https://www.latimes.com/world/la-fg-philippines-huawei-southeast-asia-20190610-story.html
